Nasdaq (NDAQ) Q2 2025 earnings summary

Executive summary

• Net revenue for Q2 2025 reached $1.3 billion, up 13% year-over-year, with organic growth at 12% and strong performance across all divisions.

• Annualized Recurring Revenue (ARR) rose 10% to $2.93 billion, with SaaS ARR up 13% and now 37% of total ARR.

• Market Services delivered record net revenue growth of 21%, with record U.S. cash equities and derivatives revenue and volumes.

• Financial Technology segment delivered 12% ARR growth, driven by new clients and upsells, and robust client demand.

• Record index inflows and ETP AUM at $745 billion, with 33 new index products launched in Q2.

Financial highlights

• Solutions revenue grew 10% to $991 million; Market Services net revenue up 22% to $306 million year-over-year.

• Non-GAAP operating income was $721 million (up 16%); GAAP operating income was $568 million (up 34%).

• Net income attributable to shareholders was $492 million for the quarter; diluted EPS was $0.85 (up 24% non-GAAP) and $0.78 (up 103% GAAP).

• Free cash flow for the quarter was $467 million; cash flow from operations was $746 million.

• Dividend payout was $0.27 per share, totaling $155 million, with a 34% annualized payout ratio.

Outlook and guidance

• 2025 non-GAAP operating expense guidance set at $2.295–$2.335 billion, reflecting FX impacts offset in net revenue.

• 2025 non-GAAP tax rate guidance maintained at 22.5%–24.5%.

• ARR growth expected to strengthen in Q4 and into 2026, especially from enterprise fintech clients.

• Continued focus on organic growth investments, deleveraging, and opportunistic share repurchases.

• Management expects continued benefits from expense synergies, with $130 million net expense synergies actioned and $140 million annual cost savings targeted by year-end.